It depends on how much you generally utilize your attorney. If sparingly, then a project-by-project basis works well. If more than sparingly, you might benefit from a retainer arrangement if you can negotiate with your lawyer to reduce his or her hourly rate in exchange for cash in-hand. If his or her rate were, say, $200 per hour, you might be able to squeeze an extra hour or two (12 for the price of 10 or somethign like that) out of a $2000 retainer arrangement.
Agreed. I will just add that some firms have implemented modified billing plans to help with this problem.
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Forgot to login on that last answer.
Almost nobody uses a monthly retainer arrangement any more. Such an arrangement is bound to create inequities on one side or the other and disincentives. There are, however, many possible creative billing arrangements that will likely better meet your goals. For example, as a regular user of legal services you can consider a reduced fee-for-service arragement where billing rates decline as volume grows. Good luck,
Well, if it's a discrete project with beginning and end-date (and clear objectives and no unpredictable adversary), someone who has been practicing in that area for awhile can peg an accurate rate. I would never take litigation on flat fee and I would never touch a anbassignement out of my expertise (ie. patent submission because I don't have a clue how to handle that).
As a compromise I have quoted a rate based on the facts known at the time but leave open the issue of later complicating information (ie. performing an audit of all contracts then you discover that some never existed in the first and you have to create new agreements and get them executed by the customer -- you can then asked the client if he wants you to draft these; if so, add $$ to the initial quote.). That seems fair.
I have done flat rate for all corporate counsel work -- exclusive retainer paid quarterly, excepting litigation. There is value here in that you are not spending effort on tinesheets, bills, cut time, AR, etc. I prefer this. E
Eric J. Emerson - Partner
Tressler, LLP
Transportation Practice Group
233 S. Wacker Drive
Chicago, IL 60606
eemerson@tresslerllp.com
312.627.4010 (office)
312.758.4301 (mobile)
Some matters, such as handling your company's annual corporate formalities, can be completed on a set fee basis, akin to a retainer. You probably don't need a retainer in the traditional sense of the term, which is simply a payment to secure the attorney's availability. It may make sense for you to "buy-down" your hourly rate by committing to a certain minimum number of hours each month, with all hours billed at the reduced rate. An open-ended arrangement will probably be disappointing for all.
The question you ask begs more questions: Why do you need a lawyer? What types of issues are you confronted with? How much time per month would you expect to ask questions? What is the level of the complexity of the work involved? What role do you want the lawyer to play as your advisor? Realize that the attorney will probably not give advice about your consulting clients, only for you directly. In many cases we advise clients that a retainer will assist them in budgeting for legal expenses for the day to day questions that arise. Many clients also find that it is easier to receive quicker turn around on questions when there is more frequent communication, as there tends to be when an attorney is on retainer. As part of the health of your business frequent communication with your attorney may help you save money by helping you act as a second pair of eyes looking at your situation helping you to come to a solution. For this reason, a basic retainer which allows access for frequent contact with your attorney to help you as you grow is always a good idea, and frequently proves to be cost effective.
It really depends on what you have budgeted. Retainers can work if you really believe that it will be beneficial to your attorney and you. Nobody likes to feel like they have a bad deal. Its best to calculate what you have paid your attorneys over the past six years on an annual basis and that will help determine if it makes sense.
Having the retainer could help you budget better and the attorney knows he is getting income monthly.
The key is to get an attorney that you can trust. Also, the retainer agreement should cover what is not covered by the agreement (ie litigation, appeals, etc.)
Good luck.
Phil
Law Offices of Philip M. Fornaro & Associates, Ltd.
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Retainers are old fashion. Suggest hourly only.
--- On Fri, 6/10/11, FizzLaw wrote:
Lawyer on Retainer v. on a matter by matter basis:
It depends on the type of business and the issues facing the business if on a regular basis or not so regular basis.
Often a business hires a lawyer for something specific and then keeps the relationship going because they liked the lawyer and were satisfied with the results of the representation or keep the relationship going b/c now the lawyer understands the business and the client.
Sometimes a lawyer is hired but the client becomes unhappy with the relationship and fires the lawyer, hires the lawyer's opponent or at least ends the relationship after the matter is closed.
A good lawyer will establish a rapport with the client, its principal
and if that is maintained and the client is 'happy' the lawyer will leave the lines of communication open so the client can call or email and ask a quick question but not be billed for it every time.
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Zoe Biel
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On at "Donald A. Statland" wrote:
> I would be happy to discuss this fellow's situation with him in person.
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> Best,
> Donald Statland
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